Every business is required to keep adequate records of their transactions to help support figures in the accounts and tax returns, however there is no set format that they should be kept in.
Keeping your books and records can be very stressful and time consuming for business owners, but it is an essential part to running a successful business. When good records are kept the business owner can make better decisions, improve cash flow and profitability because they be able to know at any given time:
- How much is owed by customers
- How much is owed to suppliers
- How profitable the business is
- How much cash is in the bank
You can either outsource your bookkeeping or keep it in house and each method has its advantages and disadvantages.
- Save money by avoiding typical employee expenses or providing additional workspace and software licenses
- Time can be spent on business activities instead of bookkeeping (i.e. a bricklayer building walls, a truck driver delivering goods)
- You pay for the expertise so if you are not happy with the service received you can ask for a refund – you can’t not pay an employee if you are dissatisfied with the work they have done
- Information may not be delivered to you in sufficient time
- Less control over how things are run
- Your data may be at risk of being stolen
If you wish to outsource your bookkeeping Brash & Co can do this for you and relatively simply and done online. Simply upload your documents (i.e. bank statements, sales and purchase invoices) to our secure document exchange and we will do the rest.
The information from the bookkeeping can be used to prepare your year end accounts and if required management accounts and VAT returns.
- If you are a very small business you can save costs by doing your bookkeeping yourself
- Information is likely to be more up to date if you do your bookkeeping on a daily or weekly basis
- Enable you to be more aware of what is being spent
- Bookkeeping knowledge could be limited
- Incorrect use could end up costing more in time and money over the long term
If you wish to keep more control of your bookkeeping, Brash & Co can assist by:
- Advising on the most suitable method for your bookkeeping
- Reviewing your bookkeeping software to ensure it is being operated correctly